Topic: compensation

Two Ways to Retire, and One’s Not Pretty

The graceful way to slow down and phase out. By Marc Rosenberg Retirements & Buyouts There are two ways that partners slow down as they approach traditional retirement age: Announced – the “cooperative” way to slow down. The partner openly and willingly informs the partners that she wishes to slow down. This change in status is usually related to the retirement process, but some partners who are not retirement-minded may wish to work less than full time in order to pursue other life goals. MORE ON RETIREMENT: Mandatory Retirement Varies by Firm Size | How to Transition Clients from Retiring Partners | Retirement Plan Funding? What Funding? | Retirement Vesting: The Devil’s In the Details | When Retiring Partners Take a […]

READ MORE → GO PRO FOR INSTANT ACCESS / PRO MEMBERS LOG IN HERE

Mandatory Retirement Varies by Firm Size

Practices between “large” firms and smaller firms diverge. By Marc Rosenberg Retirements & Buyouts As is the case with many aspects of practice management, mandatory retirement is addressed quite differently depending on the size of the firm. Here is data from a recent Rosenberg MAP Survey: Percent of firms having mandatory retirement policies for partners: 83 percent for firms with annual fees greater than $20 million. 77 percent for firms in the $10 million-20 million range. 56 percent for firms in the $2 million-10 million range. 21 percent for firms with fees less than $2 million. MORE ON RETIREMENT: Mandatory Retirement? 4 Reasons The Firm Comes First | How to Transition Clients from Retiring Partners | You Want Goodwill Payments? Give Proper Retirement […]

READ MORE → GO PRO FOR INSTANT ACCESS / PRO MEMBERS LOG IN HERE

Mandatory Retirement? 4 Reasons The Firm Comes First

And 6 reasons that firms struggle. By Marc Rosenberg Retirements & Buyouts At CPA firms, the concept of requiring partners to retire at a certain age has been around for decades. The mandatory requirement policy has its roots in the “one-firm” concept of managing a firm: The interests of the firm should always be more important than the interests of any individual partner. MORE ON RETIREMENT: You Want Goodwill Payments? Give Proper Retirement Notice | Retirement Plan Funding? What Funding? | Compromise Is In Order for Some Goodwill Payouts | When Retiring Partners Take a Specialty With Them | If Clients Leave, Do You Reduce Retirement Benefits? | The Multiple of Compensation Method, Fully Explained | The Ins and Outs of […]

READ MORE → GO PRO FOR INSTANT ACCESS / PRO MEMBERS LOG IN HERE

How to Transition Clients from Retiring Partners

Don’t make this common but potentially expensive error. By Marc Rosenberg Retirements & Buyouts I have done extensive polling of firms in recent years on client transition and offer here some of their practices. The BEST transition practice of course falls under the category of “the best way to solve a problem is to never let it happen to begin with.” MORE ON RETIREMENT: Retirement Plan Funding? What Funding? | Vesting Can Cover Part-Timers, Too | Compromise Is In Order for Some Goodwill Payouts | When Retiring Partners Take a Specialty With Them | Why You’ll Get Less from Your Partners in a Buyout than You Might by Selling the Whole Firm | Eat What You Kill? Then Maybe ‘Book of […]

READ MORE → GO PRO FOR INSTANT ACCESS / PRO MEMBERS LOG IN HERE

You Want Goodwill Payments? Give Proper Retirement Notice

No transition – no goodwill. By Marc Rosenberg Retirements & Buyouts If there is one takeaway in retirement planning, it would be this: “No transition – no goodwill.” Here’s what I mean. MORE ON RETIREMENT: Retirement Plan Funding? What Funding? | Vesting Can Cover Part-Timers, Too | Compromise Is In Order for Some Goodwill Payouts | When Retiring Partners Take a Specialty With Them | If Clients Leave, Do You Reduce Retirement Benefits? | Three Ways to Calculate Goodwill Payable in Partner Buyouts, None of Them Great | Eat What You Kill? Then Maybe ‘Book of Business’ Is for You | The Ins and Outs of AAV for Goodwill | 5 Points to Consider When Paying Out Goodwill | Clients […]

READ MORE → GO PRO FOR INSTANT ACCESS / PRO MEMBERS LOG IN HERE

Retirement Plan Funding? What Funding?

Weighing 2 pros… and 6 cons. By Marc Rosenberg Retirements & Buyouts Ninety-nine percent of all CPA firms’ retirement benefits are unfunded. (This excludes the many instances where firms carry life insurance on partners because it only covers retirement in the case of death). MORE ON RETIREMENT: Vesting Can Cover Part-Timers, Too | Retirement Vesting: The Devil’s In the Details | Compromise Is In Order for Some Goodwill Payouts | If Clients Leave, Do You Reduce Retirement Benefits? | Why You’ll Get Less from Your Partners in a Buyout than You Might by Selling the Whole Firm | The Multiple of Compensation Method, Fully Explained | Clients Leaving? Time to Reduce Retirement Benefits | How to Set Terms and Limits […]

READ MORE → GO PRO FOR INSTANT ACCESS / PRO MEMBERS LOG IN HERE

Half of CPA Firm Staffers Could Jump Jobs

Compensation, work-life balance among the factors. Are your employees satisfied? How sure are you? Nearly 48 percent of respondents in a new CPA Trendlines survey say no, not really. Their answers range from deep dissatisfaction to on the fence.

READ MORE → GO PRO FOR INSTANT ACCESS / PRO MEMBERS LOG IN HERE

Vesting Can Cover Part-Timers, Too

Partial credit is an option for those whose schedules vary over their careers. By Marc Rosenberg Retirements & Buyouts Full vesting age is different than mandatory retirement age. MORE ON PARTNER RETIREMENT: Retirement Vesting: The Devil’s in the Details | Compromise Is in Order for Some Goodwill Payouts | When Retiring Partners Take a Specialty With Them | If Clients Leave, Do You Reduce Retirement Benefits? | Three Ways to Calculate Goodwill Payable in Partner Buyouts, None of Them Great | The Ins and Outs of AAV for Goodwill | Clients Leaving? Time to Reduce Retirement Benefits | How to Set Terms and Limits for Goodwill Payouts | Partners May Balk at Guaranteeing Retirement Obligations These two ages are similar, but most firms treat them differently. For instance:

READ MORE → GO PRO FOR INSTANT ACCESS / PRO MEMBERS LOG IN HERE

Retirement Vesting: The Devil’s In the Details

And two common methods fully illustrated. By Marc Rosenberg Retirements & Buyouts Vesting of retirement benefits is not unique to CPA firms. But vesting concepts for accounting firms are somewhat unique and are important to understand. MORE ON BUYOUTS: Compromise Is In Order for Some Goodwill Payouts | When Retiring Partners Take a Specialty With Them | If Clients Leave, Do You Reduce Retirement Benefits? | Why You’ll Get Less from Your Partners in a Buyout than You Might by Selling the Whole Firm | Three Ways to Calculate Goodwill Payable in Partner Buyouts, None of Them Great | Eat What You Kill? Then Maybe ‘Book of Business’ Is for You | The Multiple of Compensation Method, Fully Explained | […]

READ MORE → GO PRO FOR INSTANT ACCESS / PRO MEMBERS LOG IN HERE